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2010 RESULTS HIGHLIGHTS Turnover exceeds R10 billion Headline Earnings +39% Operating Cash Flow per share +40% Capital Distribution 70 cents per share 2
COMPOUND ANNUAL GROWTH RATE Revenue Growth Since Inception EBITA Growth Since Inception 2 717 10 147 Revenue – R’millions 2 270 EBITA – R’millions 8 441 1 198 1 314 936 1 004 1 561 1 890 2 202 2 815 3 449 4 026 4 682 987 833 632 501 416 300 211 353 72 73 14 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 HEPS Growth Since Inception 471 CAGR % HEPS – Cents Per Share 378 Since Inception Since Listing Revenue 51% 36% 226 210 EBITA 55% 39% 185 138 HEPS 49% 35% 104 79 63 47 26 17 4 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3
INCOME STATEMENT RE-ANALYSED % Year ended Year ended Change June 2010 June 2009 R’m R’m Continuing Operations Revenue 10 147 8 441 +20% Gross Profit 4 604 3 877 +19% Net operating expenses (1 887) (1 607) EBITA 2 717 2 270 +20% Amortisation (102) (95) Operating profit 2 615 2 175 +20% Net funding costs (370) (475) Share of after tax loss of associates (2) (3) Profit before tax 2 243 1 697 +32% Tax (468) (359) Profit after tax from continuing operations 1 775 1 338 +33% Discontinued Operations Profit for the year from discontinuing operations 203 16 Profit for the year 1 978 1 354 +46% EPS 494.9 cents 374.6 cents +32% HEPS 482.9 cents 389.4 cents +24% 4
REVENUE AND EBITA BY SEGMENT June 2010 : Revenue - R10.6bn June 2010 : *EBITA : R2.8bn SSA 3% SSA 9% International International 39% 38% South Africa South Africa 53% 58% June 2009 : *EBITA : R2.3bn June 2009 : Revenue - R8.4bn SSA 8% SSA 11% International International 44% 38% South Africa South Africa 48% 51% 5 *EBITA before disposals and impairments
ANALYSIS OF SEGMENTAL REVENUE * Revenue by Customer Geography R10.6 billion (2009 : R8.4 billion) 5 652 4 309 R’millions 1,468 1 435 1 234 1 150 1 144 931 910 822 South Africa Sub-Saharan Africa Asia Pacific Latin America Rest of the World 2010 2009 * Represents revenue from the sale of domestic and global brands 6
ANALYSIS OF REVENUE FROM GLOBAL BRANDS Revenue from Global Brands R2.0 billion (2009 : R1.5 billion) 1 036 772 R’millions 453 337 319 303 100 82 72 45 South Africa Asia Pacific Latin America EMENAC Rest of the World 2010 2009 7
SEGMENTAL EBITA% Year ended Year ended June 2010 June 2009 South Africa 28% * 26% Sub-Saharan Africa 8% 19% International 28% 32% Group 27% * 27% *EBITA percentages has been normalised to exclude compensation for loss of profits received from insurers in respect of Aspen Nutritionals Group EBITA% Trend Analysis of EBITA Southern Africa International R2.8bn 30% R2.3bn 29% 42% R2.3bn 51% R1.2bn R1.3bn 27% R1.0bn 27% 12% 21% 27% 11% 58% 79% 49% 88% 89% 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 8
FUNDING COSTS Net Funding Costs 615 2010 2009 553 475 370 R'millions 53 38 28 -4 -7 -19 -188 -224 Notional interest on Preference dividend Interest expense Interest income Forex & fair value Net funding costs financial instruments (gains)/losses 9
ABRIDGED BALANCE SHEET Year ended Year ended June 2010 June 2009 R’m R’m Assets Non-current assets 12 178 6 921 Tangible fixed assets 3 012 2 374 Goodwill 456 398 Intangible assets 8 610 4 104 Other non-current assets 100 45 Current assets 4 683 3 536 Cash 2 940 2 065 19 801 12 522 Equity and Liabilities Capital and Reserves 10 886 4 263 Non-current liabilities 3 086 4 038 Preference shares - liability 387 392 Long term interest bearing debt 2 260 3 434 Other non-current liabilities 439 212 Short term interest bearing debt 3 720 2 670 Other current liabilities 2 109 1 551 19 801 12 522 10
CAPEX INVESTMENT TREND Investment in Tangible Assets R2.1 billion over five years 627 632 R'millions 379 288 169 2006 2007 2008 2009 2010 11
ABRIDGED CASH FLOW STATEMENT Year ended Year ended June 2010 June 2009 R’m R’m Cash operating profit 3 269 2 668 Working capital requirements (344) (508) Cash generated from operations 2 925 2 160 Net finance costs paid (609) (759) Investment income received 182 224 Tax paid (465) (333) Net inflow from operations 2 033 1 292 Operating cash flow per share 506 cents 361 cents Working capital as a % of Group sales 24% 26% 12
KEY LIQUIDITY RATIO Net Debt & Operating Cash Flow Trend KEY LIQUIDITY RATIOS Net cash flow from operating activities Net Debt 4 039 3,019 R'millions 2 034 2 011 1 292 1 032 968 652 709 402 2006 2007 2008 2009 2010 29% 40% 49% 24% 38% 51% 60% 71% 62% 76% 13 Debt Equity
CORPORATE ACTIVITIES 1 December 2009 : Completion of GSK Transactions • Series of interdependent strategic transactions • South Africa, Sub-Saharan Africa, Global Brands, Bad Oldesloe • 68.5 million shares issued to GSK • Transaction value of R4.6 billion • Successfully integrated 14
CORPORATE ACTIVITIES 3 March 2010 : Announcement of Sale of Campos • Agreement reached to sell the Campos manufacturing facility plus products from Strides • Part of restructuring plan for business in Brazil • Exit from tender market products, contract manufacture • Risks and rewards transferred to Strides • Completion pending regulatory process 15
CORPORATE ACTIVITIES 18 March 2010 : Announcement of Restructure of Oncology Arrangements • Sale of 50% shareholding in oncology joint ventures to Strides for USD117 million • License for existing and future oncology products secured for specified territories • Alignment with Aspen business model • Onco Therapies complete : R155 million profit on sale • Onco Laboratories to complete : R300 million profit on sale anticipated 16
CORPORATE ACTIVITIES 16 August 2010 : Announcement regarding purchase of Sigma Pharmaceuticals • Largest listed pharma business in Australia • Pharma sales > AUD600 million • Support of Sigma Board • Purchase consideration AUD900 million • Funded by cash and debt • Synergies with Aspen Australia, growth platform for Australia and region • Subject to shareholder approval, other conditions precedent 17
DISTRIBUTION OF FUND MANAGERS As at 30 June 2010 As at 30 June 2009 Asia Asia Other Other Pacific Pacific 1% 1% 2% 2% South Africa South Africa Europe Europe 59% 43% 15% 25% North North America America 23% 29% 18
CORPORATE ACTIVITY • Environmental Management • Resource conservation initiatives are in place to save on and optimise energy and water consumption • Waste management protocols are applied to ensure responsible disposal of harmful substances • Recycling initiatives are in place • Corporate Social Investment (CSI) • Contributed to 39 CSI projects in South Africa 7 Primary healthcare infrastructure projects • 15 HIV/AIDS initiatives • 6 Healthcare initiatives • 7 Community upliftment initiatives • 4 Educational and training initiatives • • Close to 780 000 beneficiaries were directly and indirectly supported through Aspen’s CSI projects 19
CORPORATE ACTIVITY • Employees • The Group provides secure employment to more than 6 000 employees • More than 50% of the employees received training during the year • On-site clinics provide a wide range of health checks, HIV/AIDS counselling and employee support as well as healthcare awareness programmes • Aspen, through QualSA, provides financial support to employees and their immediate families suffering from HIV/AIDS • Benchmarking Sustainability • Consideration and application of King III report on corporate governance • Aspen aligned itself to global Sustainability Reporting initiatives in 2010, in accordance with the Global Reporting Initiative, focussing on economic, environmental and social factors impacting business sustainability • Aspen received an A-rating from Empowerdex and was verified as a Level 4 contributor thereby validating its commitment to transformation in the South African business 20
ASPEN GROUP Headlines • Financial Highlights South Africa major contributor • International impressive • Consider Rand strength • Aspen cash generating machine • Resumption of capital distribution • • Strong currency hedge Import component in South Africa matched by international income • • South African manufacturing operation World class • Creating sustainable advantages • Contributing to margin improvements • • GSK transactions implemented Positive impact for seven months • • International operations Global Brands performing • Operations on track • Asia Pacific consolidating gains • Work to do in Sub-Saharan Africa • Positive strides in Latam • Interesting opportunities • 21
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